DBJ opens credit line for onion, potato farmers
Published:Sunday | November 6, 2011 | 12:00 AM
Development Bank of Jamaica (DBJ) has created a J$250-million special line of credit for farmers of onion and Irish potato, accessible through the National People's Co-operative Bank network.
Some 450 to 500 farmers are said to be involved in the sector, but the bank states that the loans, which are priced at 7.0 per cent, will go to those "with a proven track record".
The credit line fulfils a commitment by Minister of Agriculture and Fisheries Robert Montague, who announced at this year's Denbigh show to finance the two crops from a special pool of funds.
The effort, he said, was expected to cut back on the J$3-billion bill to Jamaica to import the crops, while creating employment in agriculture.
Montague announced that the loans would have been priced a six per cent, but DBJ said it added a percentage point to the interest rate because of "fiscal" reasons.
Last Tuesday, Rural Agricultural Development Authority Marketing Manager Byron Henry told Sunday Business that the money is needed for inputs such as seeds, fertiliser, fungicide, weedicides and packing material.
markets already identified
He said markets were already identified for the increased production expected. "We are targeting import substitution," he said. In 2010, 10 million kilograms of onion alone were imported , which is 93 per cent of total consumption."
Farmers, he said, can use land tiles, car titles and cash as collateral for the loans, which will be capped at J$2 million per farmer. Any other forms of acceptable collateral, he said, would have to be announced by the DBJ.
The DBJ said Monday that it is partnering with the parish-based cooperative banks to distribute the funds. The NPCB will on-lend the funds to farmers at 7.0 per cent per annum. Each loan would be for 4-6 months.
To participate, the bank notes, farmers must be registered with the RADA , must have a contracted buyer and must attend the Farmer Field School (FFS) training programme. RADA will also assist with post-harvest logistics.